How do we square a slow down In Automotive with the extremely low inventory on hand, inventory to sales ratios are still at a fraction of pre-COVID and cumulative production is many million units below where it was trending pre-covid. Do have any visibility into chip inventory at the auto OEM’s? What you are saying makes sense but trying to square it with the end market supply-demand.
Saved this for this morning! I understand that there's been a bit of a weird dynamic here, but this is probably one of the oddest things that needs to unwind.
Auto OEMs have hella inventory, with a lot of it "WIP" that are often considered semiconductor golden screw issues. I am unsure when this unwinds, but presumably when they start to unwind this I think it could be ugly.
Inventory is going up at car retailers too for what it's worth - LAD said this yesterday. It's this weird mix of historical lows, yet I know that automotive purchases are still cyclical, and if we are going to believe the economy hits a recession there's no way this doesn't impact purchases.
It's hard, but this is the first crack and I have a belief that when it cracks it often goes very quickly.
Thank you! It can be a lot but I’m proud of my work, truly.
Was reflecting about life and all, and for better or for worse I can do what I do best (research) for a living. Grateful for that opportunity + to share ya know?
How do we square a slow down In Automotive with the extremely low inventory on hand, inventory to sales ratios are still at a fraction of pre-COVID and cumulative production is many million units below where it was trending pre-covid. Do have any visibility into chip inventory at the auto OEM’s? What you are saying makes sense but trying to square it with the end market supply-demand.
Saved this for this morning! I understand that there's been a bit of a weird dynamic here, but this is probably one of the oddest things that needs to unwind.
Auto OEMs have hella inventory, with a lot of it "WIP" that are often considered semiconductor golden screw issues. I am unsure when this unwinds, but presumably when they start to unwind this I think it could be ugly.
Inventory is going up at car retailers too for what it's worth - LAD said this yesterday. It's this weird mix of historical lows, yet I know that automotive purchases are still cyclical, and if we are going to believe the economy hits a recession there's no way this doesn't impact purchases.
It's hard, but this is the first crack and I have a belief that when it cracks it often goes very quickly.
I appreciate the thoughtful response. Thanks. I Really appreciate the quality of stuff you put out.
Thank you! It can be a lot but I’m proud of my work, truly.
Was reflecting about life and all, and for better or for worse I can do what I do best (research) for a living. Grateful for that opportunity + to share ya know?